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NFCU Auto loan/ refinance

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NFCU Auto loan/ refinance

Recently applied for a auto loan through navy federal. Low scores Equifax- 556 ; TU-547 ; Experian- 598
Approved for 10,000
15.29% (**bleep**)
60mnths

Question is should I proceed with loan and possibly refinance in 6months although loan amount is relatively low or just wait 6months and improve scores then reapply ?

Any help or suggestions?
7 REPLIES 7
Valued Contributor

Re: NFCU Auto loan/ refinance

What is the APR on your current loan?




Message 2 of 8
Valued Contributor

Re: NFCU Auto loan/ refinance

Is this a new loan or are you trying to refinance? If you don’t need a car right now I would wait until your scores improved asime before applying again with Navy.




Message 3 of 8
New Visitor

Re: NFCU Auto loan/ refinance

No current loan. Looking to see if refinance would be a possibility later on down the line if I were to accept the rate given.
Message 4 of 8
New Visitor

Re: NFCU Auto loan/ refinance

New loan
Message 5 of 8
Valued Contributor

Re: NFCU Auto loan/ refinance

I would suggest doing a loan with Capital One and then working very hard on your rebuild over the next 6 months and then when your over 600 and cleaned up your report then refinance with Navy.  I don't  believe Navy refinances their own loans, if they do that is great and makes it simple so I would ask that question first.  It is a terrible APR but of course your scores and likely negative items in your profile are the reasons. Subprime loans suck but at least you got an approval.  I had to go through Roadloans a nightmare lender several years ago, did my rebuild for 7 months and refinanced with Navy for 4.29% down from the 14.5% Roadloans charged.    

 

Word of caution on this and any high interest car loan.  Pay very close attention to the loan to value ratio and look closely at the depreciation of the car over the next year (Edmunds is a great source) .  Many people get locked into a subprime loan they cannot refinace not becuase there scores are too low but because they have too much negative equity resulting in a high loan to value ratio.  We see this all the time here.  Buy smart, stay away from add on products because they hurt loan to value, If you live in a state that does not charge sales tax for private party cars consider private party cars over retail because again less cost that puts you in the hole.

Message 6 of 8
Valued Contributor

Re: NFCU Auto loan/ refinance


@workingfor850 wrote:

I would suggest doing a loan with Capital One and then working very hard on your rebuild over the next 6 months and then when your over 600 and cleaned up your report then refinance with Navy.  I don't  believe Navy refinances their own loans, if they do that is great and makes it simple so I would ask that question first.  It is a terrible APR but of course your scores and likely negative items in your profile are the reasons. Subprime loans suck but at least you got an approval.  I had to go through Roadloans a nightmare lender several years ago, did my rebuild for 7 months and refinanced with Navy for 4.29% down from the 14.5% Roadloans charged.    

 

Word of caution on this and any high interest car loan.  Pay very close attention to the loan to value ratio and look closely at the depreciation of the car over the next year (Edmunds is a great source) .  Many people get locked into a subprime loan they cannot refinace not becuase there scores are too low but because they have too much negative equity resulting in a high loan to value ratio.  We see this all the time here.  Buy smart, stay away from add on products because they hurt loan to value, If you live in a state that does not charge sales tax for private party cars consider private party cars over retail because again less cost that puts you in the hole.


Navy doesn’t refinance their own loans.





Message 7 of 8
Highlighted
Established Member

Re: NFCU Auto loan/ refinance

When. NO ONE would finance of vehicle for me of any kind I used Capital One. I chose a 1 year old car with 17k miles that had already depreciated 30%. The interest rate for each car is posted on their car search site so it gave me a good idea of Cap 1’s idea of how fast the car would depreciate. I put ZERO down, made my payments at 7% interest for 8 months and refinanced with NFCU to 3%.
Message 8 of 8
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